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What is the threat of entry of HF?

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HaoFeng

Lvl 1
12y ago
Updated: 8/20/2019
1. Denmark-Medium

Entry barriers: Denmark is an EU member, which means that all product from EU countries can enter the Denmark market. Products from foreign countries can also enter the Denmark market if they meet the EU standard.

As our sourcing country is Spain, other EU companies can also easily enter the Denmark company.

Reaction of current companies: As described before, fresh strawberry is a common and standard product, the reaction of existing companies on new entrants are very limited.

Norway-Low

Entry barriers:Norway has its own policy about import. However, the reason that Norway refused to become a EU member is that becoming a EU member may have very significant influence on its own agricultural industry. It is possible for the Norway government to set special restriction on import in future.

Reaction of current companies: As described before, fresh strawberry is a common and standard product, the reaction of existing companies on new entrants are also very limited.

2. Threat of New Entrants

Sweden: There is no existing company dominant the mango market in Sweden.

- Entre barrier: Sweden is a EU member. The legislation of Sweden is same as the requirement of EU for importing.

- Exit cost: Sweden is a EU member. The trade company has small lost for exiting Swedish market and turn to another market in EU.

The threat of new entrants is low.

Belgium: There are already several company in this market for importing mangos.

- Entre barrier: Sweden is a EU member. The legislation of Sweden is same as the requirement of EU for importing.

- Exit cost: Sweden is a EU member. The trade company has small lost for exiting Swedish market and turn to another market in EU.

The threat of new entrants is medium.

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Wiki User

12y ago

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